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Tax policy measures to overcome COVID-19 consequences (2) (1/14/20)

06.04.2020
Open article
The government is working hard to put support measures in place for entities affected by the COVID-19 crisis. Last week the Cabinet of Ministers put into effect a number of rules concerning industries affected by the COVID-19 crisis and how employers in those industries qualify for idle-time benefit. Despite the original intention to restrict tax deadline extensions and idle-time benefit to entities operating in the listed industries, at the meeting of 26 March, the Cabinet of Ministers approved a set of criteria to make an affected entity in any industry eligible for idle-time benefit and tax holidays for up to three years. This article explores what we see as key points. Read more..
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Unemployment benefit: aspects to consider this year (2/14/20) (0)

06.04.2020

Practice

This week we have posted a separate article about some of the measures supported by the government to overcome the consequences of the COVID-19 outbreak, including measures concerned with the unemployed and their involvement in paid temporary jobs. However, amendments effective from 1 January 2020 have changed the duration and sizing of unemployment benefit. This article explores how the National Social Insurance Agency calculates unemployment benefit. This issue is likely to become topical now that Latvia has declared an extraordinary situation, with many employers being forced to terminate their employment relationships with their workers. Read more..

OECD has finalised guidelines on transfer pricing in financing transactions (2) (3/14/20) (0)

06.04.2020

Practice

To pick up where we left off about the final version of the OECD transfer pricing (“TP”) guidelines for financing transactions, this article explores the rest of the conditions to be considered in terms of accurately defining a proposed financing transaction between related parties before setting its price (value). It is necessary to clearly define the transaction itself as well as its substance, purpose and conditions, and whether it meets the criteria for a financing transaction. Read more..

OECD has finalised guidelines on transfer pricing in financing (2/13/20) (0)

27.03.2020

Practice

On 11 February 2020 the OECD published the final version of its transfer pricing (“TP”) guidelines for financing transactions, a document welcomed also by Latvian taxpayers within multinational enterprise groups, by tax consulting service providers, and by the State Revenue Service. We wrote several articles about the draft guidelines in 2018 so this series of articles will explore some of the changes arising from the final version. We will also look at some global trends and key aspects to be considered in analysing financing transactions according to the OECD recommendations. Read more..

Practical automation of accountancy (3/13/20) (0)

27.03.2020

Practice

Today’s accountancy is moving towards a robotised future, as we are automating data exchange, data processing, and drafting of documents. It may seem that undertaking such automation requires some complex and expensive automation software, such as UiPath or BluePrism. That is not the case, though, as manual tasks can be automated with available tools without incurring any extra cost, but using those solutions requires at least a basic set of programming skills. Read more..

Tax laws must be clear enough especially with liability for tax offences (2/12/20) (0)

20.03.2020

Practice

Although the State Revenue Service (“SRS”) has already changed their approach to the VAT treatment of prematurely terminated finance leases for second-hand vehicles, this article explores some of the findings made by the Supreme Court’s Administrative Division in its ruling of 10 April 2019 (case No. A420404414, SKA-54/2019) which can help us determine the VAT treatment in other situations. Read more..

 

 
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